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According to the latest LED bulb retail price survey, the average retail price of LED bulbs replacing 40W in the world in April 2014 dropped slightly by 1.5 to US$14.7, with the most obvious price drop in China. The replacement price of 60W LED bulbs fell by 2.5, reaching $20.2.
It is understood that China's regional prices in the last quarter to replace the 40W and 60W parts have shown a downward trend, especially in the replacement of 40W, the quarterly decline is 22.9, the average price in April is 7.4 US dollars, the lowest in all regions of the world. Analyst Wang Ting said that low-priced products are still mainly from Chinese local lighting brands, while international brands are relatively weak in price competitiveness.
Chinese lighting brand manufacturers have rapidly expanded their investment in the LED market, especially in alternative light sources such as bulbs. Although excessive competition leads to poor gross margins, it is conducive to grab the necessary market share and lay a good foundation for maintaining home advantage in the Chinese market. In addition, Chinese lighting manufacturers are mostly manufacturing backgrounds, which have advantages for cost control and resource integration. Plus, all local manufacturers in the vertical supply chain can easily find more opportunities for vertical integration. In contrast, international companies such as Philips and Osram are still focusing on the business opportunities brought by the replacement of LED lamps in core markets such as Europe and the United States. The focus on the Chinese market is relatively low, and they are not actively responding to price wars, but also to Chinese brands. Vendors reserve sufficient room for growth.
Replacing 40W commodities, China's prices continue to fall sharply, replacing the global average price of 60W products. The price of commodities replacing 40W in China has dropped sharply by 7.9 in April. The prices of some of the original commodities have continued to fall, such as Foshan Lighting, which has just lowered the price in March. The 7W bulb dropped from $2.90 to about $2.40. In the UK, prices in April also showed a large decline of 6.4. For example, Toshiba's 7.7W and 470LM bulbs were downgraded from US$25.6 to US$16.7 in April.
In place of the 60W commodity segment, prices in the Japanese region continued to fall. In April, it fell sharply to 14.5, reaching US$16.4. In April, the price in Germany also fell by 6.9. The exchange rate movement is also one of the reasons for the decline in the average price.
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